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OVERVIEW

Manufacturing Clusters are promoting niche manufacturing.

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everal cluster development programmes in the Eastern Cape aim to develop specific industries by bringing together expertise and logistical support. Marine manufacturing will be the focus of the Mandela Bay Composites Cluster (MBCC). With funding from the Eastern Cape Department of Economic Development, Environmental Affairs and Tourism (DEDEAT) and the National Department of Trade and Industry (dti), MBCC will target skills development, innovation in the field of composites and work on improving the value chain and links to the supply chain. A Non-Automotive Manufacturing (NAM) Cluster will concentrate on training, supplier development, energy efficiencies and developing new markets. An Energy Manufacturing Hub is planned for 2018. The dti also offers a Competitiveness Enhancement Programme aimed at medium-sized manufacturers. It includes a cost-sharing grant of between 30% and 50% for investments up to R50-million and up to 80% if a group of smaller companies want to collaborate on matters such as advertising. New and revived industrial parks are an important plank in provincial government policy to promote manufacturing. A new park has been launched in Queenstown, Komani Industrial Park. Seven local small businesses were involved in constructing the facility. Vulindlela Heights Industrial Park (Mthatha) has received security upgrades. The Dimbaza Industrial Park welcomed a new tenant in 2017 in cooler box manufacturer Ikusasa Green. The park has 24 tenants and serves King William’s Town. The provincial government supports diversification. With the automotive sector supplying 30% of manufacturing employment and 32% of manufacturing gross value-added, the province’s economy might be vulnerable to fluctuations in demand for vehicles. The strategy is targeting sectors where the province already has a competitive advantage (such as wool and mohair), is labour intensive, will have a broad impact and has low barriers for SMME entry. Sectors targeted include: agri-processing and food; timber; tourism; construction; chemicals; energy and mariculture. One of South Africa’s most successful manufacturers is Port Elizabeth-based Aspen. The company has 60 businesses in 50 counEASTERN CAPE BUSINESS 2018

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SECTOR INSIGHT • First National Battery has the country’s first industrial cell factory.

tries and the Port Elizabeth and East London factories play an important role in producing excellent products in bulk. The Port Elizabeth site makes more than 12-billion oral solid dosage forms every year, in addition to more than 25-million units of Murine and Clear Eye eye drops being made for export to the US. The PE complex has four components, covering oral solid, liquid, steriles and niche high-potency pharmaceutical products. First National Battery, a part of the Metair Group, has one factory at Fort Jackson, just outside East London (making plastic components) and two factories in East London: automotive batteries (10 000 per day capacity); industrial batteries (first in South Africa producing industrial cells). Mpact runs two corrugated packaging convertor facilities in the Eastern Cape, at Deal Part in Port Elizabeth and Gately Township, East London. The company recently spent R150million on doubling capacity at

Eastern Cape Business 2018 edition  

The 2018 edition of Eastern Cape Business is the ninth issue of this highly successful publication that, since its launch in 2006, has estab...

Eastern Cape Business 2018 edition  

The 2018 edition of Eastern Cape Business is the ninth issue of this highly successful publication that, since its launch in 2006, has estab...

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